Quiet Title for Second Mortgages Discharged in Bankruptcy
Many people ended up filing bankruptcy because of the "great recession". A lot of those people quit paying their second mortgages and HELOC's. Although those debts are secured by real property, in many cases those liens can be removed in a Quiet Title lawsuit.
Statute of limitationsUnder Washington law, promissory notes and deeds of trust securing such notes are subject to a six-year statute of limitations. RCW 7.28.300; Westar Funding v. Sorrels, 157 Wn. App. 777, 784 (2010). When an action to foreclose on a deed of trust is barred by the statute of limitations, RCW 7.28.300 authorizes the record owner to bring a quiet title action to clear the deed for trust. Westar, 157 Wn. App. at 785.
Bankrutpcy DischargeThe statute of limitations period commences, and a cause of action accrues when a party has a right to seek relief. When more than six years have elapsed since the debts secured by the Deeds of Trust were discharged in bankruptcy, and the right to foreclose on Deeds of Trust commenced, the statute of limitations on enforcement may have run. Foreclosure actions and payments may toll the SOL. Therefore, the ability to quiet title is fact specific.